Perplexity AI bids to merge with TikTok US, source says

19/1/2025 12:24

U.S. search engine startup Perplexity AI submitted a bid on Saturday to TikTok's Chinese parent ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company's plans told Reuters.



TikTok faces a U.S. ban starting on Sunday if it does not cut ties with ByteDance, although President-elect Donald Trump said on Saturday he would likely give the short-video social-media platform a 90-day reprieve on Monday.



Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with New Capital Partners, the person said.



The new structure proposed by Perplexity would allow for most of ByteDance’s existing investors to retain their equity stakes and would bring more video to Perplexity, the source said, requesting anonymity because the matter is confidential.



Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the person said.